Construction workers covered under ESIC?

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Construction workers covered under ESIC?

To this effect ESIC instruction 4/99 casts:

References have been received from Regional Directors seeking clarification regarding
coverage of construction agencies/offices of builders particularly on the point as to
whether the construction workers working in the construction sites are to be taken into
consideration for the purpose of the coverage of the construction agencies/offices of
builders under Section 1(5) of the ESI Act as a 'shop'.
The matter was examined at Hqrs. Office and it is informed that it has been the policy of
the ESI Corporation not to cover the workers engaged by the construction agency who
belong to the unorganized sector due to the peculiar characteristics ofthe construction
industry and the peculiar nature of employment of workers engaged in it. In construction
industry the, work is carried out through the construction workers at the construction
sites where the projects are situated. The workers engaged in it are mobile and
migratory in nature. The criteria and duration of employment also vary from the work to
work. Due to the nature of employment and the nature of work place involving the
'construction workers, enforcement of the ESI Act in respect of such workers and
organizing Medical and other facilities for them which are normally available under the
ESI scheme will be difficult. Therefore the existil,1g scheme under the ESI Act is neither
applicable nor workers engaged in construction sites. Hence, the following actions may
please be taken for coverage of construction agency/offices of the Builders:

(1

Such construction agencies which are employing' 20 or more persons in their

offices and the offices are situated in implemented areas are coverable under the
Scheme. However, 'it may be ensured that the criterion of 20 or more persons is
applicable to such employees only who are coverable under Section 2(9) of the
ESIAct.
'
Such workers who are engaged by construction agencies and are working on the
site of the project should not be considered for the purpose of coverage of an
establishment dealing with construction activities.
Such construction workers are to be taken into consideration for coverage under
Section 2(9) as 'employee' who are engaged directly in a covered factory by the
principal employer or through an immediate employer.
Only employees of the construction agencies who are posted in the office are to
be taken into consideration for the coverage of the unit.
Some of the regular employees of the construction agencies mostly technical
, staff such as Engineers, Supervisors etc. who are reqular employees of the
construction agency but are normally sent to the work-site periodically, are to be
taken into account for the purpose of coverage of the establishment urider
Section 1(5).
In respect of those employees who are though regular employees of the construction
, Agency but remain on tour at the Site(s) of the construction in non-implemented areas
, for a period of more than 7 months in a year, contribution may not be charged subject to
the employer seeking exemption under Section 88 of the ESI Act in respect of those
, employees.
'
Sunil Sethi

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9/19/2U09